A federal judge in Michigan has denied an automaker’s request to issue an emergency order forcing a supplier to provide microprocessor chips.
According to Reuters, NXP Semiconductors had said earlier it had no direct contractual relationship with Stellantis supplier JVIS-USA obligating it to ship the chips.
JVIS-USA had alleged, without the chips it had ordered, there would be an “imminent shutdown” of a Detroit factory that makes the Jeep Grand Cherokee.
The supplier makes an electronic assembly that helps control the HVAC systems for the Grand Cherokee, the Dodge Challenger and Charger, and the Chrysler 300, Reuters said.
NXP had cited weather-related issues in Texas in the dispute with JVIS.
JVIS gets its NXP chips indirectly through its own suppliers and distributors. It had alleged NXP created an oral contract with it during a Zoom call that NXP held with JVIS plus a chip distributor and a circuit board supplier to JVIS. NXP denied the claim, saying the call was an standard industry status update from a distributor, Reuters added.
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By GlobalDataJVIS had alleged the shortfall would stop its production by 19 April leading to Stellantis halting production at the Jefferson North Assembly Plant in Detroit within the first 10 days of May.
The chips are made in Austin, Texas, Reuters reported.
